HMRC probes claims LVCR still going on

HM REVENUE and Customs is taking legal advice in response to claims that Channel Island retailers are shipping to the UK via third countries in order to benefit from low value consignment relief, it has confirmed.

The move followed a complaint from Richard Allen, the founder of pressure group Retailers Against VAT Avoidance Schemes, who claims to have evidence of a number of companies shipping through Belgium.

'While this is currently legit in Belgium, the law in Belgium is not compliant with EU law,' he said.

'Instead of constantly trying to avoid tax in EU member states, why doesn't the Guernsey government do what most governments do when they want to support a sector, and that is subsidise it through tax revenue?

'The idea that other countries should allow CI business a tax break because they can't survive without undercutting everyone is a joke.'